Topic: Secure your crypto wealth by not having it all in crypto (Read 473 times)

I think op's concern was not about scam projects but to invest your profits from crypto into offline businesses or anything like that. The last ledger exploit shows us nothing is air tight secure and if hardware wallet like ledger is exploitable then other type of wallet can also be exploited. So if you keep all of your funds in a single hardware wallet and one morning you see that your funds have been drained from your wallet, then that will be a bad scenario for you. So keeping some wealth in the offline world can give you relief if anything like that happens.

Their are lots of fake and scam projects in the market,  it is not all projects that is worth investing,  their is no need to have every coin in portfolio.  Research should be made to know the real and good coins that is worth to be invested in and not to just pack in scam projects all in the name of investing which will end up to be big lose for you. It is better to invest on the few reputable coins and have rest of mind than to invest on the ones that won't make any good results.

First important thing is the selection of beneficial coins and second important thing is to keep it save because if selection takes place wisely but we failed to save it then matter will be same and we will loss money. Try to use different wallets to keep your asset secure and also don't forget about your keys as without these you cannot access to your coins.

Diversification is important and through it you can decrease dropping of money but start this process with putting large percentage in top coins like that of bitcoin and ethereum after which half of the cash should be put into other successful altcoins like solana, Pepe and XRP after which you can choose little percentage in new coins because new coins has no identified future so as a result of its sudden increase you will be gainfulness but once it get reduces then deprivation will not be more than your affordability.

Even thou I agree with you to some point that it's a must that we have to diversify our investment but it's not for the sake of wallet security but for a life time security, to protect ourselves from unforseen circumstances that might raise when we do not expect them.
Instead of regretting our actions investing in one  thing it's good to separate them into classification as one of the x members suggested.

Thanks for your contribution.
it's necessary to diversify investment from virtual assets to physical assets which you referred to as plan B, it's also a good ideal from you. I have plans of investing into things like real estate as a physical asset but that won't be a fast decision as time factor is to be considered and income

Diversification is the key and this is no joke. Always have backup plan if anything goes wrong. That's how I operate. When I am finished with troubles, I should always have something else to cover that up. Putting all your eggs in one basket is a disaster when something goes wrong. Imagine dropping that basket from a high place. All of the eggs will break. That is why keeping them in separate basket is the way to go.
If one of the basket falls, the other basket should remain intact. Having all your investment into different kind of cryptocurrency is not bad but why take the risk when you have other options in hand. Invest into what you can see touch and feel.

I think you were talking about diversifying the investment not income. Although it is safe to have multiple income-generating sources, if anything wrong happens with your main income source there can be a backup. Only using multiple wallets won't solve the problem if you fail to manage them properly. Some people use multiple software wallets and store their backup keys in a single place. This is not the right approach as if something happens with your wallet storage all of your funds will be in danger as well.

Having some physical objects can be a good addition if you have made a significant profit from the crypto market. By physical object, I was referring to an asset that has a physical form in the real world. Some people might be thinking about buying a car or house but this will only add more costs to your monthly expense list as they are not assets.

Of course. Diversification is one of the keys to investing in crypto. In this case, even when we have a lot of money, we really shouldn't make all-in investments in crypto assets. Why? because we are very aware of the high risks of crypto investment. That's why we have to be able to manage a certain percentage only for crypto and other percentages in investment or other business sectors.

Not only that, when we come to crypto investment, diversification is necessary. Because this is to at least reduce the risk of going all in on just one crypto. I personally will choose to sort out several coins that I consider to be potentially bullish in the next era. The first is Bitcoin of course and the second is altcoins with all its diversification. This is what is important because we don't know what 100% of the altcoins will be truly valuable in a bullrun. That's why we need to diversify and not go all in. Be wise in managing our funds when investing so that we will never regret it later.

That is why we can't assure 100% safety of our money and it might happen that the next time we check our wallet it was empty already.
In many cases, this happens and even using an offline wallet has no excuse because these scammers will hunt you once you become their target. That is why putting everything( hard-earned money) in crypto was not a smart idea. We'd rather choose to invest in other forms of investment so whatever happens to our crypto investment, we never lose everything.

You're correct, if we're not investing in Bitcoin but altcoins, we have to understand that they can dump anytime so we have to be ready for something like that by having multiple investments. We should buy and hold our different investments in different wallets and not putting all in one wallets. If the wallet get hacked we will lose everything we owned and that isn't a good thing to happened to anybody.

Diversifying will help us make more profits, some individuals don't like investing in memecoin but they're the ones giving the best profits recently. Investing in many trend can make you alot of profits and then you can put the profits in a less volatile cryptocurrency as Bitcoin or you keep the profits in stablecoin so you don't lose money when the market is dumping as it always does after a pump.

This topic of conversation will always be relevant, since with the development of cryptocurrency technologies, there is always a gap in the system for protecting the storage of your capital. It’s not all that simple, unfortunately, the trend of fraud does not stand still, so always be vigilant and be careful about any actions with your funds.

Just separate everything,

a, hardware wallet for long term
b, we might have crypto wallets in our desktop for our trading, or at long as we are very careful of our online wallets we could be safe
c, diversity, it could be crypto, stocks or any other assets.

The key here is that as you have said, we should have plan B or plan C to survived. Life is getting harder, and if we want to give our family a better life, then we should take care of our money and our investments.

Many reasons are certainly key in diversifying our portfolios, it mustn't be cryptocurrency alone, and it must not be the mentality of certain coins/tokens alone. It is best when we have them combined and mixed in such a way that the investors will never miss out on the opportunities in the industry and also enhance the safety of the investment to a considerably good extent. Security is also one of the most important considerations here, you could imagine one day when you wake up and just find out that the wallet you left thousands of dollars has suddenly become zero in value, which is not going to go down well with anyone.

So, even in crypto investments, I urge everyone to have their security and managerial plans, it is not a must you hold all your assets in one wallet. Some people would say for easy access and management, but No, investment in online platforms is beyond that. I don't think anyone who has a crypto asset running to thousands should have nothing less than 5 crypto wallets. This should be enough to keep the risk minimal even if one of them is hacked or compromised due to personal carelessness. Another good consideration is to buy offline assets in addition to their online assets purchases, this will ensure that the person is out of hacking, and there are many of them that are yielding so high too.

Already stated in op regarding this point, if you want to make money, crypto is right place. This place is like, money falls from sky at times. But once you have made enough, diversify.

One of the key thing that help to become a successful business man is the ability to diversify one's income. Diversification is just like having a plan B. Having multiple wallet to save your huge crypto asses insist as good as diverting part of your asses into a physical asses. Both can't fail you at the same time.

Not unless you carelessly store your keys/password anywhere, especially if you keep it on your computer.
However, this won't won't give us 100% safety assurance but we can't just think that we can be reactive because of that situation. So instead of focusing only on crypto assets, we also invest in the real stock market. It is not totally a diversification but it was a smart strategy, sharing funds is somewhat a way of not losing our entire funds once hackers get into our fence.

We have to consider these things when choosing an investment,
 - funds security
 - investment strategy
 - profit gain

It is wrong to gather your eggs in one basket. No matter how secured cryptocurrency was, I wouldn’t still advise people to also put their funds into different things. If you check, the wealthy people at the top like Elon Musk, they are ventured into many things. They invest in crypto but not with everything they have. Which is why we say to invest what you can afford to lose. Not because something wrong must always happen but just in case it happens, you do not lose what you can’t bear loss for.

While diversification has its good points, it also has some important negatives, with the most important being that a person cannot really begin to diversify their portfolio until they have a high enough amount of money to do it, after all someone that has just 100 dollars cannot even think about diversifying, as a great deal of the best ways to do this are way more expensive than that, so many people do not have too much of a choice even if they know diversifying their wealth is the right move.

Crypto is a volatile market and if someone wants to put all the wealth in the Crypto market then it means that he is putting all of his money on plunge because there is no pledge that this investment will full your pocket or will be a cause of your enhanced bank balance. We should not put whole amount in that business which is really volatile there are also large number of other businesses like that of real estate, business of gold and also the buying and selling of cars.

 I am not saying that crypto is a bad market but I want to say that put a minimum amount of money in Crypto if you don't want to lost your money it is also important to put your money in different business but don't use your large percentage in a single business as business cannot identify your success with 100% surety.

You really hit the point, investing only in cryptocurrency wouldn't be true diversification because you're still in the same space and industry, still exposed to similar risks. Investment in Bitcoin and then reinvesting in altcoins, still puts the investor in most risks that is associated with cryptocurrency, scams and hacks as OP had said.  And if any major disaster were to hit the cryptocurrency market, then the person is going to be totally wrecked. Ofcourse a person can invest in different crypto coins and still have investment interest in another unrelated industry, the point is not putting all eggs in one basket.

It's far better for an investor in cryptocurrency who wants to diversify to do so in a very different industry, like gold real estate, shares of reputable companies, transportation and other profitable ventures.

Diversifying your assets or investments is a must. There is always a scene that we will never be expected to happen, even if we always make sure of the security of our wallet, the hackers will always find a way to breach our security. Even in our cryptocurrency holdings, we should consider using different wallets to avoid losing all of it if our wallet gets hacked.